# New World Development proposes US$3.2 billion rights issue

- URL: https://talkfuse.com/story/new-world-development-proposes-us3-2-billion-rights-issue/
- Published: 2026-11-15T13:33:00+00:00
- Updated: 2026-11-15T19:11:42+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/new-world-development-rights-issue-hong-kong-property-6553051
- Topics: Americas, World

## Key points

- New World Development proposes a HK$24.9 billion rights issue.
- Chow Tai Fook Enterprises will underwrite shares not taken up.
- The plan aims to reduce debt and lower the net debt-to-equity ratio.

## Summary

New World Development has proposed a rights issue to raise about HK$24.9 billion (US$3.17 billion), as the Hong Kong property developer seeks to reduce debt and strengthen its finances amid tight credit and a weak property market. Its controlling shareholder, Chow Tai Fook Enterprises, has pledged to take up its full share allocation and underwrite any shares left over.

The offer is 11 new shares for every existing share at HK$0.90 each, a 26.9 per cent discount to the theoretical ex-rights price and an 81.5 per cent discount to the last closing price. New World plans to use the proceeds to repay and refinance loans and other debt; after the issue, its net debt-to-equity ratio is expected to fall from 68.3 per cent to 48.3 per cent. The company aims to cut total debt by HK$40 billion to HK$50 billion by the end of 2031.

---
Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.